MANAGEMENT OF INNOVATION PROCESSES IN SMALL AND MEDIUM-SIZED BUSINESSES: REALITIES AND TRENDS
Abstract
The article examines current realities and key trends in managing innovation processes in small and medium-sized businesses (SMEs). The relevance of the study is determined by the growing influence of global technological transformation, limited resource potential of SMEs, and the need to ensure sustainable development under dynamic market conditions. The purpose of the research is to substantiate mechanisms for enhancing innovation management efficiency through integration of flexible (Agile) management models, principles of open innovation (Open Innovation), and structured approaches to resource optimization. The methodological basis includes analytical, structural, and comparative approaches, which allowed identifying interrelations between management models, innovation potential, financial and knowledge resources, and overall SME competitiveness. Results reveal that innovative activity of Ukrainian SMEs is constrained by fragmented operations, insufficient financial and material resources, limited digital infrastructure, and lack of a comprehensive knowledge management system. To address these barriers, the article proposes a flexible project management model, introduction of an "innovation minimum" for prioritizing initiatives, and guidelines for improving resource allocation and workflow efficiency. Key trends in SME innovation include transition to resource-efficient management, widespread digitalization of business processes, formation of networked innovation ecosystems, and systematic application of predictive analytics and modern digital tools to support managerial decisions. The study emphasizes that effective innovation management is key in strengthening competitiveness, fostering adaptability, and ensuring long-term sustainability of SMEs. The scientific novelty lies in systematization and practical substantiation of integrated management approaches combining flexibility, openness, digital maturity, and adaptability to external challenges. Results can inform methodological tools for evaluating innovation efficiency and guiding strategic programs for SME development.
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